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2024 (2) TMI 1237 - AT - Income TaxRevision u/s 263 against deceased assessee - HELD THAT - Though the notice was served upon the assessee, since deceased, the order of assessment u/s 143(3) r.w.s. 263 of the Act was issued in the name of the deceased, knowing fully well that the assessee already died on 07.06.2017 fact of which was made known to the Ld. AO by and under letter enclosing death certificate of the assessee. The same is also annexed to the paper book filed before us. When the assessee sought for adjournment on 29.09.2017 requesting for some time to represent the matter before the Ld. AO, the Ld. AO should have given further opportunity to bring on record the legal heir of the assessee and to proceed with the matter strictly in accordance with law. The duty incumbent upon the Ld. AO is evidently failed to have been performed in its proper perspective. As the assessment order issued u/s 263 is found to have been issued in the name of the deceased assessee, it is non-est in the eye of law and, thus, liable to be quashed. See KRISHNAAWTAR KABRA L/H OF JAGANNATH RAMPAL KABRA 2022 (5) TMI 744 - GUJARAT HIGH COURT - Decided in favour of assessee.
Issues:
The case involves an appeal against an order passed under Section 143(3) r.w.s. 263 of the Income Tax Act, 1961 for Assessment Year 2012-13, where the assessment was made in the name of a deceased person. Details of the Judgment: Issue 1: Assessment in the name of deceased person The appeal was filed against an order passed by the ACIT in the name of a deceased person, Late Paras Chinubhai Jani. The assessee argued that the entire proceeding was vitiated due to the assessment being made in the name of a deceased person. The CIT(A) considered this ground and opined that the mistake was curable under Section 292BB of the Act. However, the appellant contended that this provision was not applicable as it pertains to the service of notice, not the finalization of assessment. The appellant relied on a judgment by the Jurisdictional High Court, which held that issuing notice to a deceased assessee renders the assessment null and void. The tribunal considered this argument and found that the assessment order in the name of the deceased was non-est in the eyes of the law, following the precedent set by the High Court. Issue 2: Validity of Notice The tribunal referenced the judgment in Krishnaawtar Kabra case, which highlighted that issuing a notice to a deceased assessee is a nullity and affects the jurisdiction of the Assessing Officer. The absence of a valid notice renders the assessment invalid and without jurisdiction. The tribunal noted that the assessment order under Section 143(3) r.w.s. 263 of the Act was issued in the name of the deceased assessee, despite knowledge of the death and the submission of the death certificate. The tribunal concluded that the assessment order was non-est in the eyes of the law and, therefore, quashed it based on the principles established in the Krishnaawtar Kabra case. Decision: The tribunal allowed the appeal of the assessee, ruling in favor of quashing the assessment order issued under Section 143(3) r.w.s. 263 of the Act, as it was made in the name of the deceased assessee. The tribunal emphasized the importance of following legal procedures and ensuring the proper representation of the legal heir in assessment proceedings. This Order was pronounced on 23/02/2024.
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